2008 was blustery for Henderson County businesses

From staff reports

Published: Thursday, January 1, 2009 at 4:30 a.m.

Last Modified: Wednesday, December 31, 2008 at 5:23 p.m.

From business expansions to foreclosures, staff cuts and the gas crisis, 2008 was a busy year for Henderson County’s business community. The following is a listing of the top 10 business items that made news this year.

1. Hurricanes Ike and Gustav disrupted gasoline supplies as they slammed into the Gulf Coast this fall and panic buying set in, leaving many Henderson County gas stations dry.

Motorists in the county emptied many pumps around town Sept. 12, as Hurricane Ike roared toward the Texas coast, which accounts for a fifth of the country’s oil supply. Gas prices spiked, reading as much as $4.99 for regular unleaded, and continued upward over the course of three weeks, with some stations reporting prices of $5 for a gallon of regular unleaded. Reports of price gouging prompted N.C. Attorney General to conduct an investigation of gas stations across the state.

Frustration with dwindling supplies turned to anger as area residents sat in long gas lines daily to get gas wherever they could find it. Some stations had to wait days to get in new supplies and others had only the more expensive grade fuel to offer before supplies returned to normal.

Gas supplies returned to normal by mid-October.

2. Henderson County saw more people losing their homes as the county posted a near record number of foreclosures in 2008.

Henderson County had 201 foreclosures through the first nine months of 2007, compared to 290 through Sept. 30 of this year, according to state court records. Henderson County had a total of 262 foreclosures in 2007.

Lending companies, such as Countrywide and Chase, garnered approval from Wall Street to sell subprime loan programs by making them available to mortgage brokers, who in turn offered the loans to borrowers. Some of the subprime loan programs required no verifiable income or good credit scores, and in many cases, a credit score as low as 400 could still qualify a person for a home loan.

Many borrowers who got subprime loans took adjustable interest rates that started out at a low rate, expecting that they would make a higher income in a couple of years. But when the rates went up, the mortgage payment climbed higher than the borrowers could pay.

3. Blue Ridge Community College unveiled its new Technology Education and Development Center in September. The building contains a virtual reality learning space, five digital media facilities, a computer lab with 48 seats and video conference classrooms that can connect students in classrooms around the county through live video streaming. The building also featured wireless Internet access throughout.

The Blue Ridge Conference Hall, seats up to 1,000 people for theater-style performances, and up to 500 for banquets. The hall can be partitioned into three smaller spaces seating 250 people. Each room has a high-resolution data projector.

The Technology Building was funded at a cost of $16.1 million by local taxpayers, and it has many features that can benefit the community at large.

4. The General Electric Lighting Systems plant in Henderson County was slated to become a standalone company after the Louisville, Ky.-based Consumer & Industrial Division announced in July that it would spin off its Appliances, Lighting and Industrial unit to GE shareholders.

Company officials said in May that a spin off was a possible outcome of a strategic review of its Appliances division. The East Flat Rock facility is in the company’s Appliances, Lighting and Industrial division.

The step was considered necessary to preserve the company’s long-term growth, GE chairman and CE Jeff Immelt said at the time.

The change would have resulted in a new name and stock symbol for the company with the same compensation packages for employees, company officials said. GE Spokeswoman Kim Freeman said Dec. 24 the company was “suspending” its plans to spin off the East Flat Rock facility, citing the bad economy.

5. Borg Warner announced in August that it would cut 70 to 100 full-time, hourly, salaried and temporary employees from its workforce at its Fletcher facility in the Cane Creek Industrial Park and the Turbo and Emissions Systems division in Arden located on Brevard Road.

A downturn in the economy, particularly the automotive industry, coupled with spiraling energy costs led the Auburn Hills, Mich-based company to cut 1,000 positions throughout the U.S., company officials said.

The Thermal Systems plant in Fletcher makes fans and fan drives for the automotive industry and commercial customers including auto makers Ford, General Motors and Chrysler.

Company officials announced the Fletcher-based firm was acquired by Vanir Energy, which is a subsidiary of Vanir Group of Companies Inc. Vanir Energy will be headquartered in the Fletcher Business Park and staffed by Appalachian Solar Energy employees with support from Vanir management in Sacramento, Calif., company officials said.

Vanir Energy will own and operate the solar thermal systems it installs, allowing customers to “go solar” without making capital expenditures. The company’s immediate focus is to own and operate $14 million worth of solar installations in North Carolina, company officials said. The move made the Fletcher business a world-leader in solar installations.

7. ArvinMeritor Inc. announced in June that it would invest $33.7 million to expand plants in Henderson and Scotland counties, adding 13 jobs at the Fletcher plant and 54 jobs in Laurinburg.

Henderson County commissioners approved incentives to help persuade ArvinMeritor executives to invest in Henderson County’s plant, and Fletcher leaders reached a deal that avoided annexation of the U.S. 25 plant.

The Fletcher plant could have been part of the company’s shutdown of plants in North America as part of a process to streamline operations, but the Michigan-based corporation decided to not only stay in Henderson County but expand, creating the new jobs.

The expansion is expected to take place over the next three years. It was made possible in part by a $167,000 state grant.

8. A Flat Rock landmark, The Woodfield Inn, ended up in the hands of the property’s lienholder permanently, following a foreclosure sale on the Henderson County Courthouse steps in June.

SPCP Group submitted a $1 million offer for the business in a foreclosure sale April 29. SPCP Group was the only bidder at the sale. In a separate foreclosure sale, the group out of Greenwich, Conn., also bid $600,000 for the house that is next door to the inn.

SPCP Group will retain the business and the house after countering an upset bid that was placed during the 10-day upset bid period following the April 29 sale, court officials said.

The property, including the 1852 inn, house and 24 acres, had been offered for $3.75 million on the Web site B&B and Country Inn Marketplace. JRH Holdings filed for Chapter 11 bankruptcy in August 2007, listing assets of $4.5 million against $3.87 million in liabilities. The inn was valued at $3.8 million and the single-family home was worth $310,000, according to court records. The inn is on the National Register of Historic Places.

9. Stepping Stone Properties, a Hendersonville real estate business that had been in existence for 23 years, burned to the ground Dec. 14. A jogger passing the realty office on Church Street at Fifth Avenue saw flames and called 911.

Another business attached to the back of the Stepping Stone Properties realty office, the Red Door Gallery, suffered smoke and heat damage.

Hendersonville Police ruled the fire an arson and began a search for two suspects spotted leaving the scene minutes before the building burst into flames. The unidentified suspects have not been caught.

Stepping Stone Properties is owned by Suprina Stepp, a 26-year real estate veteran. She said recently that she and her staff continue to work and will announce the location of a temporary office soon.

10. Park Ridge Hospital, located at 100 Hospital Drive in the Naples community, broke ground on a $25.5 million expansion project in April.

The expansion came as the population served by the hospital grows, mimicked by growing competition among regional hospitals. Officials said the expansion would improve hospital efficiency, patient safety and doctor-patient confidentiality.

The project will build and renovate 65,267 square feet of hospital space. Departments will expand, including the surgical, obstetric, outpatient and laboratory areas.

The expansion includes an 18,000-square-foot Women’s Center with large boutique-style patient rooms and a dedicated C-section room. Construction starts Monday. The entire project should be completed by the end of 2009.

<p>From business expansions to foreclosures, staff cuts and the gas crisis, 2008 was a busy year for Henderson County’s business community. The following is a listing of the top 10 business items that made news this year.</p><p>1. Hurricanes Ike and Gustav disrupted gasoline supplies as they slammed into the Gulf Coast this fall and panic buying set in, leaving many Henderson County gas stations dry.</p><p>Motorists in the county emptied many pumps around town Sept. 12, as Hurricane Ike roared toward the Texas coast, which accounts for a fifth of the country’s oil supply. Gas prices spiked, reading as much as $4.99 for regular unleaded, and continued upward over the course of three weeks, with some stations reporting prices of $5 for a gallon of regular unleaded. Reports of price gouging prompted N.C. Attorney General to conduct an investigation of gas stations across the state.</p><p>Frustration with dwindling supplies turned to anger as area residents sat in long gas lines daily to get gas wherever they could find it. Some stations had to wait days to get in new supplies and others had only the more expensive grade fuel to offer before supplies returned to normal.</p><p>Gas supplies returned to normal by mid-October.</p><p>2. Henderson County saw more people losing their homes as the county posted a near record number of foreclosures in 2008.</p><p>Henderson County had 201 foreclosures through the first nine months of 2007, compared to 290 through Sept. 30 of this year, according to state court records. Henderson County had a total of 262 foreclosures in 2007.</p><p>Lending companies, such as Countrywide and Chase, garnered approval from Wall Street to sell subprime loan programs by making them available to mortgage brokers, who in turn offered the loans to borrowers. Some of the subprime loan programs required no verifiable income or good credit scores, and in many cases, a credit score as low as 400 could still qualify a person for a home loan.</p><p>Many borrowers who got subprime loans took adjustable interest rates that started out at a low rate, expecting that they would make a higher income in a couple of years. But when the rates went up, the mortgage payment climbed higher than the borrowers could pay.</p><p>3. Blue Ridge Community College unveiled its new Technology Education and Development Center in September. The building contains a virtual reality learning space, five digital media facilities, a computer lab with 48 seats and video conference classrooms that can connect students in classrooms around the county through live video streaming. The building also featured wireless Internet access throughout.</p><p>The Blue Ridge Conference Hall, seats up to 1,000 people for theater-style performances, and up to 500 for banquets. The hall can be partitioned into three smaller spaces seating 250 people. Each room has a high-resolution data projector. </p><p>The Technology Building was funded at a cost of $16.1 million by local taxpayers, and it has many features that can benefit the community at large.</p><p>4. The General Electric Lighting Systems plant in Henderson County was slated to become a standalone company after the Louisville, Ky.-based Consumer & Industrial Division announced in July that it would spin off its Appliances, Lighting and Industrial unit to GE shareholders.</p><p>Company officials said in May that a spin off was a possible outcome of a strategic review of its Appliances division. The East Flat Rock facility is in the company’s Appliances, Lighting and Industrial division.</p><p>The step was considered necessary to preserve the company’s long-term growth, GE chairman and CE Jeff Immelt said at the time.</p><p>The change would have resulted in a new name and stock symbol for the company with the same compensation packages for employees, company officials said. GE Spokeswoman Kim Freeman said Dec. 24 the company was suspending its plans to spin off the East Flat Rock facility, citing the bad economy.</p><p>5. Borg Warner announced in August that it would cut 70 to 100 full-time, hourly, salaried and temporary employees from its workforce at its Fletcher facility in the Cane Creek Industrial Park and the Turbo and Emissions Systems division in Arden located on Brevard Road. </p><p>A downturn in the economy, particularly the automotive industry, coupled with spiraling energy costs led the Auburn Hills, Mich-based company to cut 1,000 positions throughout the U.S., company officials said.</p><p>The Thermal Systems plant in Fletcher makes fans and fan drives for the automotive industry and commercial customers including auto makers Ford, General Motors and Chrysler.</p><p>6. Appalachian Solar Energy was bought by Vanir Energy LLC of California in November.</p><p>Company officials announced the Fletcher-based firm was acquired by Vanir Energy, which is a subsidiary of Vanir Group of Companies Inc. Vanir Energy will be headquartered in the Fletcher Business Park and staffed by Appalachian Solar Energy employees with support from Vanir management in Sacramento, Calif., company officials said.</p><p>Vanir Energy will own and operate the solar thermal systems it installs, allowing customers to go solar without making capital expenditures. The company’s immediate focus is to own and operate $14 million worth of solar installations in North Carolina, company officials said. The move made the Fletcher business a world-leader in solar installations.</p><p>7. ArvinMeritor Inc. announced in June that it would invest $33.7 million to expand plants in Henderson and Scotland counties, adding 13 jobs at the Fletcher plant and 54 jobs in Laurinburg.</p><p>Henderson County commissioners approved incentives to help persuade ArvinMeritor executives to invest in Henderson County’s plant, and Fletcher leaders reached a deal that avoided annexation of the U.S. 25 plant.</p><p>The Fletcher plant could have been part of the company’s shutdown of plants in North America as part of a process to streamline operations, but the Michigan-based corporation decided to not only stay in Henderson County but expand, creating the new jobs.</p><p>The expansion is expected to take place over the next three years. It was made possible in part by a $167,000 state grant.</p><p>8. A Flat Rock landmark, The Woodfield Inn, ended up in the hands of the property’s lienholder permanently, following a foreclosure sale on the Henderson County Courthouse steps in June.</p><p>SPCP Group submitted a $1 million offer for the business in a foreclosure sale April 29. SPCP Group was the only bidder at the sale. In a separate foreclosure sale, the group out of Greenwich, Conn., also bid $600,000 for the house that is next door to the inn.</p><p>SPCP Group will retain the business and the house after countering an upset bid that was placed during the 10-day upset bid period following the April 29 sale, court officials said. </p><p>The property, including the 1852 inn, house and 24 acres, had been offered for $3.75 million on the Web site B&B and Country Inn Marketplace. JRH Holdings filed for Chapter 11 bankruptcy in August 2007, listing assets of $4.5 million against $3.87 million in liabilities. The inn was valued at $3.8 million and the single-family home was worth $310,000, according to court records. The inn is on the National Register of Historic Places.</p><p>9. Stepping Stone Properties, a Hendersonville real estate business that had been in existence for 23 years, burned to the ground Dec. 14. A jogger passing the realty office on Church Street at Fifth Avenue saw flames and called 911. </p><p>Another business attached to the back of the Stepping Stone Properties realty office, the Red Door Gallery, suffered smoke and heat damage.</p><p>Hendersonville Police ruled the fire an arson and began a search for two suspects spotted leaving the scene minutes before the building burst into flames. The unidentified suspects have not been caught.</p><p>Stepping Stone Properties is owned by Suprina Stepp, a 26-year real estate veteran. She said recently that she and her staff continue to work and will announce the location of a temporary office soon. </p><p>10. Park Ridge Hospital, located at 100 Hospital Drive in the Naples community, broke ground on a $25.5 million expansion project in April.</p><p>The expansion came as the population served by the hospital grows, mimicked by growing competition among regional hospitals. Officials said the expansion would improve hospital efficiency, patient safety and doctor-patient confidentiality.</p><p>The project will build and renovate 65,267 square feet of hospital space. Departments will expand, including the surgical, obstetric, outpatient and laboratory areas.</p><p>The expansion includes an 18,000-square-foot Women’s Center with large boutique-style patient rooms and a dedicated C-section room. Construction starts Monday. The entire project should be completed by the end of 2009.</p>